STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY V. HONORABLE EDDIE C. LOVELACE, JUDGE, CUMBERLAND CIRCUIT COURT AND KENTUCKY FARM BUREAU MUTUAL INSURANCE COMPANY, BOBBY SEVERE
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IMPORTANT NOTICE
NOT TO BE PUBLISHED OPINION
THIS OPINION IS DESIGNATED "NOT TO BE PUBLISHED."
PURSUANT TO THE RULES OF CIVIL PROCEDURE
PROMULGATED BY THE SUPREME COURT, CR 76.28(4)(C),
THIS OPINION IS NOT TO BE PUBLISHED AND SHALL NOT BE
CITED OR USED AS BINDING PRECEDENT IN ANY OTHER
CASE IN ANY COURT OF THIS STATE; HOWEVER,
UNPUBLISHED KENTUCKY APPELLATE DECISIONS,
RENDERED AFTER JANUARY 1, 2003, MAY BE CITED FOR
CONSIDERATION BY THE COURT IF THERE IS NO PUBLISHED
OPINION THAT WOULD ADEQUATELY ADDRESS THE ISSUE
BEFORE THE COURT. OPINIONS CITED FOR CONSIDERATION
BY THE COURT SHALL BE SET OUT AS AN UNPUBLISHED
DECISION IN THE FILED DOCUMENT AND A COPY OF THE
ENTIRE DECISION SHALL BE TENDERED ALONG WITH THE
DOCUMENT TO THE COURT AND ALL PARTIES TO THE
ACTION.
RENDERED : OCTOBER 1, 2009
J-I E
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2009-SC-000 144-MR
STATE AUTO PROPERTY & CASUALTY
INSURANCE COMPANY
V.
ON APPEAL FROM COURT OF APPEALS
CASE NO . 2008-CA-001950
CUMBERLAND CIRCUIT COURT NO. 07-CI-00027
APPELLEE
HONORABLE EDDIE C. LOVELACE, JUDGE,
CUMBERLAND CIRCUIT COURT
AND
KENTUCKY FARM BUREAU
MUTUAL INSURANCE COMPANY
REAL PARTY IN INTEREST
AND
BOBBY SEVERE',
REAL PARTY IN INTEREST
MEMORANDUM OPINION OF THE COURT
AFFIRMING
State Auto Property & Casualty Insurance Company (State Auto) appeals
as a matter of right the decision of the Court of Appeals which denied State
Auto's writ of prohibition against Judge Eddie C . Lovelace of the Cumberland
Circuit Court:. Judge Eddie C . Lovelace denied State Auto summary judgment
and ruled adversely to State Auto on certain discovery matters. For the
reasons set forth herein, we affirm the Court of Appeals.
BACKGROUND
This matter began in the Cumberland Circuit Court as a result of an
automobile accident between Bobby Severe and Angela Spears . Spears was
injured and filed suit against Severe . State Auto insured Spears and also
provided the underinsured coverage (UlM carrier) . Severe was insured by
Kentucky Farm Bureau Mutual Insurance Company (KFB) for $100,000 .00. A
Coots' letter was sent pursuant to KRS 304.39-320(4) and the UIM carrier paid
the $100,000 .00 to Spears, preserving its subrogation rights. Subsequently,
the UIM carrier paid Spears an additional $50,000 .00 to settle the UIM claim
against it.
At this point, Spears has been made whole and is out of the picture,
although State Auto is subrogated to her claims against Severe for
$150,000 .00. State Auto then made aa demand against KF13 for the
$ 100, 000.00 KFB offered Spears to settle. KF13 refused . State Auto filed suit
against KFB for the $100, 000. 00 advanced, and against Severe for the
$50,000.00 paid in UIM benefits.
State Auto moved for summary judgment against KF13 for the
$100, 000. 00 on the theory that pursuant to KJRRS 304 .39-320(4), it was entitled
to reimbursement as a matter of law. The trial court denied summary
judgment on grounds that State Auto only stepped into the shoes of Spears, so
State Auto would have to prove liability as well as damages . The trial court
also made some pre-trial discovery rulings that State Auto objects to.
1
Coots v. Allstate Ins . Co ., 853 S.W.2d 895 (Ky. 1993) .
State Auto petitioned the Coup. of Appeals for a writ. (CR 76.36) to
prohibit the trial court fi-onl acting outside its jurisdiction, or alternatively,
from ordering that State Auto may not take the deposition of Todd Whittle (the
adjuster of KFB who evaluated the claim) . The Court. of Appeals denied the
writ and State Auto appeals as a matter of right .2
ANALYSIS
A writ of prohibition is an extraordinary remedy,
available only in two instances: 1) when a "lower court
is proceeding or is about to proceed outside its
jurisdiction and there is no remedy through an
application to an intermediate court; or 2) the lower
court is about to act incorrectly, although within its
jurisdiction, and there exists no adequate remedy by
appeal or otherwise, and great injustice or, irreparable
injury will result."
Ally Cat, LLC v. Chauvin, 274 S.W .3d 451, 456-57 (Ky. 2009),
uotin~ Hoskins
v. Maricle, 150 S.W.3d 1, 10 (Ky. 2004) . "[A]lthough a writ of prohibition will
issue only in exceptional circumstances, whether to do so lies within the sound
discretion of the court in which the writ is sought." St. Clair v. Roark, 10
S.W.3d 482, 485 (Ky. 1999) (citin Haight v. Williamson , 833 S .W.2d 821, 823
(Ky. 1992) ; Jones v. Hogg, 6,39 S.W.2d 543, 543 (Ky. 1982)) . "The court in
which the petition is filed may, in its discretion, address the merits of the issue
within the context of the petition for the writ, or may decline to do so on
grounds that there is an adequate remedy by appeal." St. Clair, 10 S.W.3d at
485 .
2 CR 76 .36(7) .
The standard of review we must. apply when reviewing a. denial of a writ,
of prohibition depends on the class or category of writ . Grange Mutual
Insurance Co. v . Trude, 151 S.W.3d 803, 810 (Ky. 2004). When the lower court
is alleged to be acting outside its jurisdiction, the proper standard is de novo
review because jurisdiction is generally only a question of law. Id . When an
appellant alleges that the court with which the writ was filed is acting within its
jurisdiction but in error, the standard is abuse of discretion . Id . In the. case
before us, State Auto argues that. the trial court's rulings in this case were in
direct conflict with the language of KRS 304.39-320(4) and exceeded its
jurisdiction . We disagree that the trial court exceeded its jurisdiction, because
the circuit court is the proper court to interpret a statute . 3 Thus, the circuit
court had subject matter jurisdiction, and the Court of Appeals so held. The
rulings by the trial court are alleged to be in error. Therefore, State Auto's
argument should have been that the court is acting erroneously within its
jurisdiction, which requires a review under an abuse of discretion standard .
The Court of Appeals also held the petitioner failed to show that the
Cumberland Circuit Court was acting erroneously within its jurisdiction and
that a great injustice and irreparable injury would result if the petition was not
granted . We agree. Summary judgment, discovery, and protective orders are
all matters within the jurisdiction of the trial court and upon a final judgment
can be appealed . The only allegation of injustice is that State Auto will have to
try the case, and will have to do its own discovery on damages. Even if the
3
See KRS 23A.010(l) .
Court of Appeals had believed the trial court was acting erroneously within its
jurisdiction, the decision whether or not to issue a writ is discretionary with
the Court of Appeals, which may decline to do so on the grounds that there is
an adequate remedy by appeal. St. Clai , 10 S.W. 3d at 485 .
Accordingly, we cannot say that. the Court of Appeals abused its
discretion in denying Appellant's writ of prohibition, and hence, we affirm.
All sitting. All concur.
COUNSEL FOR APPELLANT :
David A. Nunery
Angela Michelle Call
Steven Casey Call
Nunery & Bennett, PLLC
105 East Main Street
Campbellsville, KY 42718
COUNSEL FOR APPELLEE:
Honorable Eddie C. Lovelace
Judge, Cumberland Circuit Court
Justice Center
104 Cumberland Street
Albany, KY 42602
COUNSEL FOR REAL PARTY IN INTEREST
KENTUCKY FARM BUREAU MUTUAL INSURANCE COMPANY:
John C . Miller
Bertram, Cox, & Miller, LLP
321 East Main Street
P.O. Box 1155
Campbellsville, KY 42718
COUNSEL FOR REAL PARTYIN uvrEREST
BOBBY SEVERE :
Jeffrey Hall Hoover
Hoover Law Office
40 South Main Street:
P.O . Box 985
Jamestown, KY 42629
Stephen Howard Poindexter
412 Courthouse Square, Ste 202
P.O . Box 904
Burkesville, KY 42717
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